View more on these topics

ASA upholds Lloyds TSB complaint against debt claim chaser

The Advertising Standards Agency has held up a complaint from Lloyds TSB with regard to adverts by Debt Free UK, a claims firm.

Lloyds TSB complained that the adverts of Debt Free UK, a company which offer borrowers the chance to clear their secured and unsecured debts, were misleading. The bank argued that it exaggerated the likelihood of a debt being written off and also Debt Free did not make clear that fees applied to Debt Free’s services.

The advert stated: “If your credit card or loan was taken out before April 2007 it could be completely unenforceable and will not need to be repaid. Our solicitors can use Government legislation to arrange for your outstanding balances to be written off and claim compensation for you without affecting your credit rating.”

Debt Free argued that its advert did not exaggerate the likelihood of a debt being written off because it stated that a credit card or loan taken out before April 2007 “could be” unenforceable, not that all would be.

It also said the advert did not state or imply that the service offered by the company was provided free of charge. They said their costs varied depending on the circumstances of the client.

The ASA upheld the complaints of Lloyds TSB. It agreed that the advert was likely to mislead readers as to the likelihood of their debts being written off.

The agency also found that Debt Free could charge two sets of fees: firstly fees to obtain and assess one or more credit agreements and, secondly, fees paid to take matters forward in the event those agreements were considered potentially unenforceable. It says Debt Free did not make this clear either.

When questioned by the ASA, Debt Free said it did not know what percentage of all credit card or loan credit agreements were incorrect. However, it said that, of the credit agreements they had submitted to their solicitors, they believed approximately 76 per cent of the credit card and 85 per cent of the loan agreements had broken the terms of the Consumer Credit Act to a sufficient degree that they were legally unenforceable as defined under it.


Gibbs to head merged Jupiter trust

Jupiter is planning to merge three split-capital investment trusts and relaunch them as a single tax­efficient trust managed by Philip Gibbs.Tony Nutt’s Second Enhanced Income Trust, Gibbs’s Second Split Trust and the Defined Capital Return fund, a pas­sively managed, Jersey-domiciled vehicle, are the affected funds.The combined assets will create a vehicle with more than £200m […]


Passing the buck?

The Adam Smith Institute has slammed the FSA’s response to the financial crisis, saying its failure to recognise the extent of its own failings compromises its ability to improve regulation.

Baillie Gifford unveils Greater China Oeic

Baillie Gifford has today launched its Greater China fund.The Oeic gives investors access to companies from mainland China, Taiwan and Hong Kong. It is now open to the wider retail market after first opening for trading as an institutional product in November last year. The fund is managed by Mike Gush and Richard Sneller and […]

Build a lifeboat

It is not hard to form the conclusion that the FSA is increasingly concerned about the financial strength of elements of the wrap and platform market.

Navigating volatility

The making of any fund can be seen in how it responds to crises and opportunities. In this short video, Head of Multi Asset at Royal London Asset Management Trevor Greetham outlines how the Royal London Global Multi Asset Portfolios or GMAPs navigated through Brexit and the US election cycle. He also highlights the importance […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm